MCF MCF Energy Ltd

(1)  Welchau-1 First Test Interval
(2)  Kinsau-1A Wellsite Preparation

VANCOUVER, BC, Nov. 27, 2024 /CNW/ - MCF Energy Ltd. (TSXV: MCF) (FRA: DC6) (OTCQX: MCFNF) ("MCF", "MCF Energy" or the "Company") provides an update on (1) production testing at the Welchau-1 well in the ADX-AT-II licence in Upper Austria, and (2) wellsite preparation for the Kinsau-1A well at Lech, Germany.

(1)  First Test of Steinalm Formation, Welchau-1, Austria

MCF Energy and its Welchau Investment Area partner and licence operator ADX Energy Ltd have completed the first flow test of the Steinalm formation in the Welchau-1 discovery well, located in the ADX-AT-II licence in Upper Austria. MCF holds an 25% economic interest in the Welchau Investment Area which contains the Welchau-1 discovery and other emerging prospects in the Northern Calcareous Alps.

On the November 20, 2024 MCF announced the initial results of the first test of the Steinalm formation where gas was observed at surface followed by an unassisted stable rate of liquid flow including drilling mud, likely contaminated formation water and some oil traces. The observed liquid rate was between 240 to 290 barrels per day from unstimulated perforated intervals.

The Steinalm formation was tested across two perforation intervals between 1452.5 metres to 1463.5 metres of measured depth (MD) "Upper" and 1474.5 metres to 1480 metres MD "Lower". The perforated intervals are over fractured zones where hydrocarbon shows were observed during drilling of the well and above where oil was recovered from a down hole modular formation dynamic tester (MDT). 

Further Analysis of the first Steinalm Formation Test

A production logging tool (PLT) was run in the well to determine the source of the produced mud and formation water. The PLT results indicate that most of the fluid produced during the first Steinalm test came from the bottom of Lower perforations with little or no contribution from the Upper interval approximately 27 metres above. Fluid entry to the well bore appears to be at a single point at approximately 1478 metres MD which was flowing preferentially to the Upper perforations. The dominant flow is interpreted to be from a fracture system accessing an oil/water contact lower in the structure. Based on the PLT results the first Steinalm test is not considered diagnostic of the presence or absence of hydrocarbons. A retest of the Upper Steinalm perforations can be conducted at a future time after isolating the Lower perforations.

Figure 1 below shows the Steinalm Test 1 completion diagram and a schematic showing the dominant contribution of flow from the bottom of the Lower perforations as interpreted from the PLT results.

Planned Reifling Formation Testing Program

The Steinalm test completion has been retrieved and the Steinalm Upper and Lower perforations have been isolated with a packer below the Reifling test interval. The plan is to move up the hole, higher into the interpreted hydrocarbon column and undertake a test at the upper most part of the 128-metre thick Reifling formation. 

A new test completion will be run in the well and the Reifling will be perforated across three intervals. The three intervals to be tested contemporaneously will include a 16-metre interval from 1324 metres to 1340 metres MD, a 5-metre interval from 1346 metres to 1351 metres and a 24-metre interval from 1358 metres to 1382 metres MD. (refer Figure 2)

The commencement of testing of the Reifling formation is expected to occur by the end of next week.

The future testing program after the above-mentioned Reifling test will be determined based on further analysis of Steinalm and Reifling test results.

Economic Participation in the Welchau Investment Area

MCF holds a 25% economic interest in the Welchau Investment Area which contains the Welchau-1 well and other emerging prospects in the Northern Calcareous Alps. Under the Energy Investment Agreement between MCF and ADX Energy, MCF funded 50% of Welchau-1 well drilling costs to earn a 25% economic interest in the Welchau Investment Area, which is part of ADX's ADX-AT-II licence in Upper Austria. MCF has met its funding and earning obligations to ADX and it holds MCF's 25% economic interest in the Welchau Investment Area with MCF obliged to pay 25% of ongoing well costs.

(2)  Kinsau-1A Wellsite Preparation, Lech, Germany

Construction of the well site for the Kinsau 1A re-entry was started in October and continues to be on schedule with a rig ready completion date at the end of December 2024. The pad has been cleared of trees and levelled. The original Kinsau-1 well stub has been found and a new well head installed. The concrete pad has been finished and final construction continues. See Figure 3.

Mobil drilled the original Kinsau-1 well in 1983 and made a gas and condensate discovery which was not economic at that time and the well was suspended and later abandoned. This well had a final stable flow rate of almost 25 MMcf per day of gas and condensate. The new well will be a re-entry of this well with a target within 100 metres of the productive zone.

James Hill, CEO and Director of MCF Energy, stated, "We continue to move forward with the testing program at Welchau-1 in Austria. I am disappointed with the unclear results of our first test in the Steinalm formation, but I remain optimistic that upcoming perforation and testing of the uphole Reifling formation of this discovery well will establish the presence of significant resources of hydrocarbons. There is good progress in Germany with the construction of the Kinsau-1A drill site, which continues to be on schedule with the well expected to spud in Q1 of 2025. We will be providing more updates in the coming weeks and months as these projects proceed." 

About MCF Energy

MCF Energy was established in 2022 by leading energy executives to strengthen Europe's energy security through responsible exploration and development of natural gas resources within the region. The Company has secured interests in several significant natural gas exploration projects in Austria and Germany with additional concession applications pending. MCF Energy is also evaluating additional opportunities throughout Europe. The Company's leaders have extensive experience in the European energy sector and are working to develop a cleaner, cheaper, and more secure natural gas industry as a transition to renewable energy sources. MCF Energy is a publicly traded company (TSX.V: MCF; FRA: DC6; OTCQX: MCFNF) and headquartered in Vancouver, British Columbia. For further information, please visit: www.mcfenergy.com.

Additional information on the Company is available at www.sedarplus.ca under the Company's profile.

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SOURCE MCF Energy Ltd.